Singapore Exchange partners with Temasek for digital asset venture

The Singapore Exchange (SGX) has announced a joint venture with state investment firm Temasek to set up a digital asset venture focused on capital markets workflows.

Pradyumna Agrawal (left), managing director of blockchain at Temasek and Lee Beng Hong, head of fixed income, currencies, and commodities at SGX / Photo credit: SGX

The joint venture will specialize in existing and emerging asset classes, including funds and sustainable finance. It will also team up with fixed income issuance platforms to provide issuers, arranger banks, lawyers, investors, and paying agents with an issuance-to-settlement network for Asia bonds.

Temasek’s portfolio includes companies in financial services, telecommunications, media and technology, and energy sectors, among others. As of March 31, 2020, its portfolio is valued at S$306 billion (US$230.6 billion).

“The early success in our digital bond issuance platform has paved the way for SGX to make a larger move into digital assets,” said Lee Beng Hong, head of fixed income, currencies, and commodities at SGX.

The new digital assets venture comes after SGX, along with Temasek and HSBC, issued a public syndicated digital bond for food and agribusiness company Olam International last year.

The partnership aims to leverage SGX’s multi-asset platform, coupled with Temasek’s blockchain technology through smart contracts, ledger, and tokenization.

See also: The investor’s gambit: Temasek launches its own startups

Meanwhile, Singapore-based digital exchange Istox has concluded a US$50 million series A round, bringing in board four new investors, including the venture capital arm of sovereign investor Japan Investment Corporation (JIC) and the Development Bank of Japan.

Recently, Temasek launched Affinidi, a blockchain startup designed to adapt to different scenarios. Its technology has been used in the recruitment sector and insurance as well as in verifying Covid-19 swab test results and health credentials.

Temasek has also backed produce-preserving foodtech firm Apeel Sciences, Chinese biotech startup D3 Bio, and early-stage VC fund Info Edge Ventures.